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  1. 1. The 2009 Synergy Sessions - Details on page 19 June 2009
  2. 2. every department in your dealership. That means more profit potential for starting as low as campaign you initiate... distancing Packages Unlimited DMS UPDATE DMS system you will be reaching Updatingcustomers who aren’t 1-866-702-1566 customers with every marketing yourself from your competition. By having current data in your 199 per month $Are you looking for DMS system (such as ADP or R&R) is current, accurate, and in DMS Update automatically insures all of the information in your compliance with the latest government regulations. physical addresses on a monthly basis. email addresses, phone numbers and Your customers are on the move. Are you keeping up with them? We provide the most currentthere? AutoSuccess Magazine is published monthly at 3834 Taylorsville Rd., Building A, Ste. 1B Louisville, KY 40220; 502.588.3155, fax 502.588.3170. Direct all subscription and customer service inquiries to 877.818.6620 or Subscription rate is $69 per year. AutoSuccess welcomes unsolicited editorials and graphics (not responsible for their return). All submitted editorials and graphics are subject to editing for grammar, content and page length. AutoSuccess provides its contributing writers latitude in expressing advice and solutions; views expressed are not necessarily those of AutoSuccess and by no means reflect any guarantees. AutoSuccess accepts no liability in respect of the content of any third party material appearing in this magazine or in respect of the content of any other magazine to which this magazine may be linked from time to time. Always confer with legal counsel before implementing changes in procedures.© All contents copyrighted by AutoSuccess Magazine, a Division of Systems Marketing, Inc. All rights reserved. Reproduction in whole or part is prohibited without express written consent from AutoSuccess. AutoSuccess may occasionally make readers’ names available to other companies whose products and/or services may be of interest; readers may request that names be removed by calling 877.818.6620. Printed in the USA. Postmaster: Send address changes to AutoSuccess Magazine, 3834 Taylorsville Rd., Building A, Ste. 1B Louisville, KY 40220.3834 Taylorsville Rd. Building A, Ste. 1B Louisville Kentucky 40220 | 877.818.6620 / 502.588.3170 | / | Susan Givens, Publisher Thomas Williams, VP & Creative Director Dave Davis, Editor & Creative Strategist Brian Ankney, Sales-Improvement Strategist John Warner, Sales-Improvement Strategist jwarner@autosuccessonline.comfeature solution leadership solution marketing solution sales & training solution Increase Reporting Capabilities and Boost Relevancy and Response, Part 2 STILL STANDING: WHAT DO YOU DO NOW? MOVING THE NEEDLE TOWARDS POSITIVE EIGHT WORDS TO HELP YOU NEGOTIATE TIME IS UP THE RED FLAG RULE IS HERE Local Charity Golf Tournaments Reach Important Target Markets How a Houston Internet Department Jumped 45 Spots in CAR SALESMAN MAKES $200,000 IN START REBUILDING RELATIONSHIPS USING GOOGLE ANALYTICS WITH WHAT WAS THEIR NAME AGAIN? MAXIMIZE MARKETING DOLLARS SELLING OUT OF A RECESSION LEAPING TOWARDS THE TOP: BEWARE OF FALSE PROFITS WEB MERCHANDISING: 8TH HABIT LEADERSHIP: How Does Your Staff Measure Up? Is the Lemon Worth the Squeeze? SALESPERSON QUIZ: SURVIVE OR PERISH MORE EFFECTIVELY E-MAIL MARKETING Internet Sales 20 Group XVII Leading the Whole Person THIS ECONOMY MOMENTUM Let’s Get Emotional National Rankings . ROI 25 34 09 27 32 36 16 18 08 14 17 22 26 30 28 24 10 By DalePollak TomBear MattBaker KirkManzo DrakeBaerresen TimJames PaulCummings PatrickColbert SeanStapleton PeterMartin SteveCottrell MichaelThomas DavidBook StephenR.Covey An Interview With JoeHealy SeanV.Bradley MarcSmith DougBurkert 2 8 4 pg2 pg1 pg1 June 2009 joe healy david book tim james
  3. 3. leadershipsolution StephenR.Covey PaulCummings leadershipsolution 8TH HABIT LEADERSHIP: SURVIVE OR PERISH Leading the Whole Person “Every great A few issues ago, I said that too many Many leaders make minimal use of the capacity of their people, seeing them as “job leader attends to all four What separates those dealers who survive We must devote ourselves to a bigger and better purpose than profit above all else. The managers are still stuck in an Industrial Age descriptions.” They fail to see each person dimensions of the and thrive from those who panic, pullback trappings of success have created a flawed mindset that treats people as things. as a unique and precious asset, loaded with untapped potential. whole person and ultimately perish? In my opinion, the answer is simple. Dealers who still have that approach where the money mattered more than people. An era, in fact, where we were Many think we put the Industrial Age behind if she hopes to truly lead twinge of excitement in their stomach when lulled into complacency by the shimmer and us. Many think we’re in a new “Age of the By contrast, great leaders treat their people them — and to they get up everyday will make it through shine of our own achievements. We must Knowledge Worker.” Many think the bad as whole people — not just as “human leverage their great these troubled times. Dealers who wake up realize that activity without accomplishment old days of robotic workers and hierarchical resources.” The whole person has four capacities.” with a feeling of fear in their gut and worry is meaningless. mindlessness are over. dimensions: the body (physical capability), in their mind will make decisions that will the heart (passion), the mind (knowledge and lead them down a disastrous path. Which We need a fundamental change of But these damaging attitudes persevere — in skills), and the soul (meaning and purpose). dealer group are you in? This is a tough — perspective and attitude. A change like this some ways worse than ever. Consider these but fair — question for you to ask yourself. starts with you and cascades consistently instances: A leader who neglects any of these four through your people to your customers into • The fast-food worker whose cash dimensions inevitably treats people as Ask them about the four dimensions of their Earlier this year we hosted an amazing event your community. Yes, we must rekindle our register blinks “too slow” if she takes things. If she neglects the hearts of her lives — at least once, and maybe often. Ask: at the House of Blues in New Orleans. More spirits and relentlessly pursue our goals and too many seconds on an order people, she will never engage their passions than 1,700 dealers, automotive vendors dreams with a renewed level of passion. The Body and manufacturers attended our event. I • The nurse required to wear a “locator in their work. If she neglects their minds, she We must drive ourselves to a new level of badge” that rings every few minutes will never capitalize on the innovative ideas • Is your “economic engine” in good had many conversations with clients and commitment. We must make a commitment even when he is trying to calm a patient they could bring her. shape? industry-related people who all wanted the to do “whatever it takes” to win without or put a child to sleep • Are your family’s needs being met? answer to the same question: What do you sacrificing our integrity and character. We • The required “annual performance Every great leader attends to all four think is going to happen to our industry? must make a commitment to invest in our The Heart Uncertainty has the ability to foster doubt review” system that creates division, dimensions of the whole person if she hopes people even while we build our investment destroys morale and motivates people to to truly lead them — and to leverage their • What have you always loved doing? and drain people of their confidence. When accounts. Yes, we must commit to becoming leave great capacities. • What job-related opportunities are you times like this slap us in the face, people look real “difference makers” to others. Why? passionate about? for hope and search for solutions. Because the truth is simple: If we want to During the Industrial Age, a worker at least Captain Mike Abrashoff exemplifies a great So where do dealers find the hope they need make a difference in this world and in our The Mind had a supervisor to talk to. In many cases “8th-Habit” leader. He inherited a ship that to push through their doubts? Where do they communities and to our people, we can. today supervision is done digitally and at was sinking — figuratively. When he took • What are you really good at? • What opportunities do you see for find the confidence they need in order to long distance. command of the USS Benfold, the Navy continue to believe in their business when We must have the spirit of the pioneer. We warship had the worst performance record growth and development? must have the curiosity and ingenuity of the bad news is swirling all around them? Contrast this kind of dehumanizing in the fleet. Within a couple of years, the How can they prevail when so many around the inventor. We must have the strength and The Spirit management with the kind of leadership that Benfold turned in the best performance them fall and fail? Where will they find the resolve of the farmer. We must have the truly leverages the worker as a whole person record in the fleet. • Do you have peace of conscience? same willingness to fail and continue to try • What contribution would you love to inspiration they need in order to make the — who values the minds, hearts and spirits right decisions in the coming months? How again and again of a great scientist. We must of his people: How did he do it? By getting to know make here — something of real meaning have the initiative and drive of the world- to you? can they drive their business forward when • The pizzeria manager who huddles with his people— deeply and thoroughly. He they find themselves in the midst of continual class athlete. Most importantly we must his employees once a week and asks, interviewed each sailor, asking about their predictions of doom and gloom? individually and collectively have passion for “What could we do this week that we’ve hopes, dreams, frustrations, goals, likes and Think of the power of a leader who knows and pride in what we do. We must love the never done before?” dislikes. He found that many wanted college these things about her people — about their I have been on the road since the House automobile business, the people we lead and • The Navy captain who interviews each degrees; he arranged for long-distance untapped passions and skills. A leader who of Blues Event visiting with our clients. I the customers we serve. sailor to find out about his or her most learning opportunities. He found they hated doesn’t know the answers to these questions have talked with people at every level of cherished dreams in life painting the ship; he modified the deck is like the farmer who doesn’t know he is the business. My conversations have been Yes, the times are tough, but we are tougher. • The division head who deeply plating to cut back on painting. He got their scratching out a living on top of an acre of full circle … from porters, service writers, It is in our moments of decision that our understands what each of her people are brains working on doing things differently, diamonds. receptionists, sales professionals, department destiny is shaped. What decisions will you really good at — and capitalizes on it better, faster. managers and dealer principals. As we make? Do you have the courage to reinvent Stephen R. Covey, Ph.D., is co-founder of FranklinCovey, and is the author of The 7 talked and discussed their current business your business model because you need th 8 Habit Leadership starts with a deep th To become an 8 Habit leader, you must Habits of Highly Effective People. He can results and future plans, I was encouraged to? This era is a brave new frontier that is understanding of your people as whole practice the 8th Habit: Find your voice and be contacted at 866.892.6363, or by e- at what I uncovered. It was a simple and begging for a brave new approach. Bob and people. help others find theirs. Hear their voices. mail at clear distinction. Where there is leadership Betty are gone. They have been replaced by a and positive expectancy, I found hope, generation of socially aware, Internet savvy, enthusiasm, excitement and energy. I also discerning, demanding, highly educated found positive results. consumers. What will you do? How will you do it? When will you get started? I believe with every ounce of my being that I know the answers to all of the questions in this article. In fact, I know for certain Paul Cummings is president and CEO of that success leaves evidence. I found such Paul Cummings Enterprises. He can be contacted at 866.865.3171, or by e-mail at evidence during my travels over the last 100 days. We must bring an end to an era0 where greed rules over common goodness. 08 9 the #1 sales-improvement magazine for the automotive professional
  4. 4. marketingsolution SeanStapleton SELLING OUT OF A RECESSION New car sales trends example, studies show that 70 percent vehicles from your dealership. A loyalty are lower than industry of customers stop servicing their vehicle program is a tremendous resource for: expectations for months now and consumer at the dealership they purchased from confidence continues to be very low, but after the warranty runs out. Targeting Data Collection — A loyalty program is a dealers across the country are holding their past customers who have an expiring great way to capture an e-mail address for own by committing a larger share of their warranty with a relevant message is a regular, permission-based marketing. marketing budgets to fixed operations. This huge revenue opportunity for the average Building A Brand — A loyalty program re-allocation of marketing dollars is critical dealership. However, you must approach this is your way to differentiate your dealership because of fewer new car sales. Independent opportunity with a “help me, not hunt me” from the competition for new customers, and dealers and independent repair centers have message and communicate that your offer the competition from independents for your had to become more aggressive in the market has tremendous benefit for them. current customers. place, which puts more pressure on dealers Increased Customer Communication to focus on fixed operations. Remember: Selling out of a recession requires getting — A loyalty program keeps your customer Your best customer is the independent repair a better handle on the customer lifecycle. engaged and willing to accept your center’s No. 1 target. The average first-year customer represents communication methods. less revenue-producing potential than the Maintaining Profit Margins — A customer In the past, dealers had the luxury of focusing customer in their third year of ownership. Do loyalty program helps you get away from on short-term results with their advertising you know where each and every customer discounting for a better bottom line. and marketing dollars. We are now in your DMS is at in their lifecycle? The Understanding your customers spending experiencing uncharted economic conditions following is a sample checklist to determine habits — A loyalty program can even help that require a focus on the long-term cost how well you know your customers. Which you dictate your customers spending because of losing a current customer, and the high of your customers: you are tracking when and what they spend costs of acquiring new customers. If it takes • have a warranty expiring in the next 3 their money on. $10 to recruit a new customer, it should months? only take $1, spent correctly, to keep an • purchased a warranty at the time of A customer rewards/loyalty program must existing customer. If you are not sustaining purchase? be done right. Make sure it always adds and the average new car revenue you did 12 to • are repeat sales customers? builds value. It has to be easy to use, not only 18 months ago, look at different areas of • have a lease expiring in 3 months? for the customer, but for your entire staff. your dealership and different ways to make • buy a new vehicle every two years, three up this gap. Most dealerships don’t have to years, etc.? Also, a quality customer reward/loyalty look too far to find untapped incremental • referred a new sales customer to you that program is backed by a fully adopted cultural revenue opportunities. One critical area of purchased a new vehicle? change in the dealership. You can’t just opportunity that typically gets overlooked is • are due for a major service? talk about being different; you have to be customer retention. Customer retention has • are repeat service customers? different. You have to be willing to invest always been important, but the recession has • have transitioned into your service time, money and change to develop long- compounded the significance of retaining department following the purchase of term customers. Long-term customers are the your current customers. Statistics show the their vehicle? most profitable customers and that is the best average customer retention with customers formula for selling out of a recession. that have conducted a transaction with your If you don’t have the answers to those questions readily available in a format If this information sounds overwhelming, it dealership in the past 12 months is greater really isn’t. You may need some expert help, than 60 percent. Dealerships that aren’t that is easy to understand, utilize and track, it will be extremely challenging to but in the long run, selling out of a recession attaining customer retention of 60 percent or is a simple process of adjustment, not an better can significantly impact their bottom tap into those huge revenue-producing opportunities. It makes good business sense overhaul. You can’t change the economy, but line by improving this percentage by as little you can change your approach to the way you as one percent. to run a diagnostic on your DMS and turn it into an intelligent resource that enables you look at your business and do more than just So how do you sell out of a recession? to make effective daily marketing decisions. survive. The adjustments mentioned are things First and foremost, it doesn’t make a lot of that will help your dealership prosper in a sense to quit spending marketing dollars all Want to make a huge impact on your down economy and thrive in a good economy. together. In fact, with OEM issues impacting revenue? A Deloittle and Touche automotive Don’t just to survive, make the necessary Tier 1 advertising budgets, there is more study showed that a five percent increase in changes to thrive today and in the future. pressure on individual dealers to bridge customer loyalty in the service department can mean a 25 percent increase in revenue For a customized analysis of your DMS, the gap. Instead of drastically cutting your please contact me for further details. marketing dollars, refine what you do with for the entire dealership. Develop a customer those budgets and re-allocate them to other loyalty program for your dealership — 80 revenue-producing opportunities in your percent of customers who participate in Sean Stapleton is the executive vice dealership. a rewards/loyalty program say their president of business development for membership impacts their purchasing Visible Customer. He can be contacted at Devote more attention to targeting and a decisions. Loyal customers drive higher 866.406.6337, or by e-mail at higher level of effort in developing relevant profits, are more likely to refer a friend or1 messages to your targeted customer. For family and are more likely to purchase more0